New Delhi, April 11 Residents of Delhi will receive up to Rs 1 lakh as an incentive for scrapping their old BS-IV and below vehicles in exchange for purchasing a new electric car, according to the draft EV policy released by the city government.
According to the draft Delhi Electric Vehicle Policy 2026-2030, the incentive will be applicable if the purchase is made within six months of receiving the Certificate of Deposit (CoD) from an authorized scrapping facility.
It states that a scrapping incentive of Rs 1,00,000 will be provided for the purchase of a new electric car, subject to an ex-factory price not exceeding Rs 30 lakh.
This benefit will be available for scrapping of BS-IV and below cars registered in Delhi and will be limited to the first 1,00,000 eligible applicants under the policy.
For electric four-wheeler goods carriers (N1 trucks), the policy proposes a scrapping incentive of Rs 50,000 under similar conditions, including scrapping of BS-IV and older vehicles and purchase within six months of CoD issuance.
In the two-wheeler segment, a scrapping incentive of Rs 10,000 has been proposed for those purchasing a new electric vehicle after scrapping Delhi-registered BS-IV and below two-wheelers.
Similarly, buyers of electric three-wheelers (L5M) will be eligible for a scrapping incentive of Rs 25,000 under the same conditions.
The draft states that all scrapping incentives will be disbursed through direct benefit transfer to individuals, who will have to apply for subsidy claims through a mechanism notified by the Transport Department.
It also clarifies that the incentive will only be applicable to the owner of the scrapped vehicle.
In addition to scrapping benefits, the policy proposes a 100 per cent exemption from road tax and registration fees for all electric vehicles registered in Delhi during the policy period, subject to specified conditions.
Electric cars with an ex-showroom price of up to Rs 30 lakh will be eligible for full exemption from road tax and registration fees until March 31, 2030, while strong hybrid electric vehicles in this category will receive a 50 per cent exemption.
However, electric cars with an ex-showroom price above Rs 30 lakh will not be eligible for any exemption under the policy.